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2017 (10) TMI 1151 - AT - Income TaxAddition unexplained expenditure u/s 69 - bogus purchases - Held that:- The addition was restricted on the basis of profit ratio of the impugned purchased (Rs.2159 8572/-). We have noticed that ld. Commissioner (Appeals) has restricted the addition on the basis of profit element embedded in the bogus purchases. We are of the considered opinion that under Income Tax Act only real income can be taxed by the Revenue. We may further conclude that even if the transaction is not verifiable, the only taxable is the taxable income component and not the entire transaction. And after considering the facts of the case and the rival contentions of the parties we are of the opinion that in order to fulfil the gap of revenue leakage the disallowance of reasonable percentage of such purchases would meet the end of justice. The Hon’ble Bombay High Court in CIT Vs Hariram Bhambhani [2015 (2) TMI 907 - BOMBAY HIGH COURT] held that revenue is not entitled to bring the entire sales consideration to tax, but only the profit attributable on the total unrecorded sales consideration alone can be subject to income tax. In the result this ground of appeal raised by revenue is dismissed. Addition on account of difference in TDR - Held that:- The original owner of TDR was one Shri Ramesh Shah Partner of M/s Sumer Corporation who had obtained DRC from Bombay Municipal Corporation (BMC). The assessee filed copy of agreements, ledger accounts of the assessee in the books of Premleela Investment and the confirmation of the opening balance with Premleela Investments to substantiate their contention. The actual transaction for purchase of TDR was examined by the learned Commissioner (Appeals) and also examined the value of transaction entered by the assessee as well as the value of agreement between seller Premleela Investments and come to the conclusion that the value of agreement is ₹ 1,99,02,636/- and deleted the addition. We have seen that the learned Commissioner (Appeals) verified the facts and the consideration paid by the assessee for purchase of TDR from Premleela Investments. The learned DR has not been able to bring any incriminating fact or evidence to discard the finding of learned Commissioner (Appeals). Thus, we do not find any merit in the grounds of appeal raised by the revenue. In the result this ground of appeal raised by revenue is dismissed.
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